Chuck Schumer Urges Trump To ‘Hang Tough’ On China

May 07 10:33 2019

The drop in the Chinese markets was more severe, with the Shanghai Composite Index falling by 6 per cent on Monday and the Shenzhen Component Index plummeting by 8 per cent.

World markets swooned Monday after President Donald Trump threatened to increase tariffs on imports from China at a time when investors were expecting trade tensions to subside. Trump was right to make this move, and he needs to stand firm in the face of political and market pressures to backtrack – and Republicans in Congress need to stand with him. Benchmark U.S. crude shed $1.49, or 2.4%, to $60.46 per barrel in electronic trading on the New York Mercantile Exchange.

Washington and Beijing have engaged in reciprocal tariff hikes over the previous year while negotiators have engaged in lengthy trade talks, alternating negotiations between the two capitals. That would extend penalties to everything China ships to the United States, its biggest foreign customer.

“Vice-Premier Liu He will visit the United States on May 9 and May 10 for trade talks at the invitation of senior USA officials”, the Ministry of Commerce said in a statement on Tuesday.

“Nonetheless, the probability of renewed escalation of the U.S”.

Trump early on Monday appeared to defend his Sunday statement, citing the trade deficit between the United States and China.

Geng declined to give further details when asked who might go or whether the talks would start Wednesday as scheduled.

“It is a little bit remarkable, because we know there is a difference in opinion in the administration, including within the negotiating team with [US Treasury Secretary Steven Mnuchin] being much more in favor of there being a [trade] deal [between China and the US]. We can’t even wait for this trade deal”.

“Their efforts to build ports around the world aren’t because they want to be good shipbuilders and stewards of waterways, but rather they have a state national security element to each and every one of them”. -China relations, according to Taiwan’s defense ministry.

The two countries have been trying to resolve disputes over intellectual property theft and forced technology transfers.

On the back of China’s booming electric-vehicle industry, global automakers have drawn up plans to step up EV production in the country, with a view of exporting those to other markets. Sorry, we’re not going to be doing that anymore!’

China will likely now test the resolve of the president and our nation.

One tweet by user “Swedenhermit”, translated from the original Chinese, reads: “After Trump tweeted about raising tariffs (on Chinese goods), Chinese netizens on Twitter are all celebrating and praising this”. That, in turn, will spark howls of protest from all directions.

Needless to say, the damage to the Chinese economy would boomerang back to the US, slowing growth and presenting a series of headwinds for a variety of sectors. He further said he would target an additional $325 billion of Chinese goods with 25% tariffs “shortly”.

Still, Trump can not yield.

The EURO Stoxx 50 (^STOXX50E), the eurozone’s leading blue-chip index, fell by more than 2.2% in early trading before recovering slightly on Monday. Many of the Chinese on these platforms are celebrating and praising Trump’s decision. Senate Majority Leader Mitch McConnell (R-Ky.) should propose a resolution expressing support for the president and make it clear that he is not a lone wolf on U.S.

“Over the course of the last week or so we have erosion in commitments by China”, U.S. Trade Representative Robert Lighthizer told reporters.

Chinese stocks tumbled along with the yuan as a pair of tweets by President Donald Trump undermined confidence in a trade agreement.

The Chinese government has yet to officially comment on Mr Trump’s tweets.

China stocks tumble on Trump tariff threat

Chuck Schumer Urges Trump To ‘Hang Tough’ On China
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